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GBP/USD Forecast: Pound to US Dollar Exchange Rate Mixed on UK Lockdown Easing

May 11, 2021 - Written by John Cameron

The Pound to US Dollar (GBP/USD) exchange rate has been mixed for much of the day as Sterling continues to be supported by England’s roadmap out of lockdown.

At the time of writing the GBP/USD pairing are trading at around $1.4142 as USD tries to pullback from disappointing employment data from the US at the end of last week.

Pound Sterling (GBP) Exchange Rate Mixed on UK Economic Optimism

The Pound has been mixed against the US Dollar for much of the day as Sterling continues to find support from the UK’s roadmap out of lockdown, with Prime Minister Boris Johnson last night confirming that the next stage of the roadmap could go ahead.

Leading a press conference at Downing Street Boris Johnson confirmed the third stage of lockdown easing.

The next stage of restrictions easing will see indoor hospitality reopen and up to 30 people able to meet in an outdoor setting.

At the press conference the Prime Minister urged the public to remain cautious as close contact is reintroduced:

‘We all know that close contacts such as hugging is a direct way of transmitting this disease. So I urge you to think about the vulnerability of your loved ones.’

US Dollar (USD) Exchange Rate Mixed as US Job Openings Surge

The US Dollar has been mixed against many of its rivals today as the currency looks to claw back its losses seen at the end of last week.

However, the latest jobs opening data from the US appears to have confirmed that the US is suffering from a shortage of workers as the country reopens from the pandemic.

Job openings, jumped almost 600,000 to 8.1 million during March, the highest level since the survey began in December 2000.

Cleveland Fed President Loretta Mester spoke to Yahoo Finance on Tuesday regarding the disappointing employment data from last week saying:

‘[The] April jobs report was disappointing but outlook is still bright. Reopening varies across sectors, schools aren't open and health concerns are affecting labor supply.’

GBP/USD Exchange Rate Forecast: UK GDP Data in Focus

Tomorrow, Pound investors will be keeping an eye on the release of the latest preliminary GDP data from the UK for Q1 which is forecast to show that GDP contracted 1.4% in the first quarter.

However, any news that the UK economy contracted less-than-expected would see the Pound head higher against many of its major rivals.

US Dollar traders will be keeping an eye on the latest core inflation rate data from the US which is forecast to have risen to 2.2% year-on-year as the country enjoys a swift recovery from coronavirus.

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